Chapter 489
Chapter 489
After I had made up my mind, I organized what to do next, and then contacted the people involved and gave them instructions.
He asked with interest.
[suddenly? Why? Did you find any way?]“Yes. Not sure yet.”
Again, the opponent was surprised.
[Really? What is that method?]“You are the only one who knows for now.”
I told you about the foresight I saw and how to make it happen.
Hearing my words, he burst out laughing.
[Hahaha!]“This may sound crazy, but… … .”
[Hey! This is a way I never really thought of! It sounds crazy, but I think it’s possible. I’ve seen a thesis once before. No, in the current situation, I think this is highly possible.]“That’s fortunate.”
[I’ll proceed with what I said.]When the call ended, I said to Taek-gyu.
“I will go to China. Keep things going, and if anything happens, call me right away.”
Taehyung nodded his head.
“Okay.”
“Talk to Hyunjoo noona.”
Taek-gyu burst into tears at my words. You’ll probably hear some nagging from your sister.
* * *
I boarded a private plane and headed to Beijing.
After a long time in Beijing, for some reason, it was clear without fine dust. It’s nice to see the sky, but when you think about it, this isn’t necessarily a good thing. It means that the manufacturing factories around the city are shutting down.
I met Li Suwei, Commerce Manager at the hotel.
“haha! Welcome, Mr. Kang.”
“long time no see.”
He looks relaxed, as if nothing happened. After saying goodbye, we sat down and drank tea.
There was an interpreter, but simple conversations were held in English.
“How about Beijing?”
“A lot has changed in that time. I was surprised to see the skyscrapers coming in nearby.”
“Ah! You are talking about the Beijing Finance Center.”
In the past few years, new skyscrapers have been popping up all over China as if competing, and the city’s skyline has changed.
Today, as many as 50 percent of the world’s skyscrapers are in China.
I remembered the curse of the skyscraper that an economic crisis would occur when the skyscraper was completed.
Large-scale construction projects, such as skyscrapers, start when the economy is booming. Therefore, by the time the construction is finished, the recession begins according to the business cycle.
Of course, it’s all debt that builds those tall buildings. In a way, it can be said that it is a tower built on debt.
I drank tea and brought up the topic.
“How is the Chinese economy?”
He said with a relaxed smile.
“It looks like you came here out of curiosity. There are only a few bad things, but no big deal.”
As the saying goes that the economy is psychology, there is no other place where self-fulfilling prophecies come true as well as the market. When rumors spread that a bank will fail, even a healthy bank collapses with a bank run.
Therefore, no matter how serious a sense of crisis internally, the government always says it’s okay. The moment the government admits that it is a crisis, the economy will collapse faster.
Since reform and opening up, China has actively attracted foreign capital and has grown. However, when the crisis was not serious, the capitalists showed signs of leaving China.
Therefore, he was meeting foreign investors every day and persuading them. Meeting me is probably part of that.
“For such a thing, the rate of decline was unusual. Aren’t almost all indices, including the Shanghai Composite Index, down more than 40%?”
“Stocks sometimes go up and sometimes they go down. Now it is just a natural adjustment process.”
Even if you say this, you will know better that the situation is not serious.
“Then what do you think of the current situation in the Philippines? Is that a natural adjustment process?”
Wall Street speculative capital was already moving towards Asia. Albert Management was at the forefront. George Soros, who had a history of attacking the foreign exchange markets in Hong Kong and China in the past, also joined.
The Philippines was attacked first.
The Philippines raised its base rate to 7.5 percent to prevent capital outflows after the US raised its base rate. This was a level that the Philippine economy, already in recession, could not afford. Credit default swap (CDS) premiums soared, and companies had great difficulty in raising funds.
In this situation, as a large amount of short selling poured into the foreign exchange market, the panicked Philippine government poured out its foreign exchange reserves to defend the exchange rate.
I asked for help from neighboring countries, but it was difficult for everyone to help because it was difficult for them to decide on their own. Rather, Japan withdrew Japanese funds from the Philippines.
How much longer can the Philippines survive?
“This huge amount of capital would not have come together just to rob the Philippines. Now, isn’t it obvious where this speculative money will go?
Li Suwei, director of commerce, snorted.
“The rumor that China will do the same is the story spread by speculative capitalists. Should I believe it and fear it?”
The devaluation of the yuan is an unavoidable reality as China is engulfed in various adverse events. However, if it proceeds rapidly, there is a risk that not only the Chinese economy but also the global economy will collapse.
China did not stand still. It inspires internal solidarity and puts great effort into securing foreign exchange reserves in case of emergency.
However, the yuan is expected to depreciate, and the dollar has disappeared from the market. If it is certain that the more you exchange money later, the more profitable it is, then there is no reason to exchange money now. Companies also held the dollars they earned from exports without exchanging them.
In order for the dollar to appear in the market, the yuan must be depreciated to a level that the market can understand. However, China has taken a similar approach to solving the problem.
He called the CEOs and investigated them, accusing them of various crimes and starting to rob them. Even Ma Huateng, CEO of Wechant, China’s largest internet company, was summoned and questioned.
The startled companies all at once poured their dollars into the market. However, this method has its limitations. Companies are not stupid enough to try to hide their dollars more cleverly.
“Is that all you are curious about?”
Of course not.
I then asked
“Are there any plans to send the People’s Liberation Army into Hong Kong?”
At my question, Li Suwei’s expression hardened. The smile disappeared from his face, and his eyes turned cold. There was a strong sense of intimidation in his small stature.
he asked displeased.
“Why is Professor Kang curious about that?”
I said calmly.
“It’s the hometown of my fiancée.”
This meant that I did not want to send the People’s Liberation Army into Hong Kong.
Commerce Director Li Suwei, who looked at me for a moment, sighed and said.
“I understand you are concerned, but that is not something Kang should care about. To be honest, I don’t want a lot of people, myself included, to have that happen.”
The protests in Hong Kong were getting more intense day by day, and the number of casualties increased. The People’s Liberation Army deployed to Shenzhen began training as expected.
State-run media, such as the People’s Daily and CCTV, declared the protests illegal in Hong Kong and criticized the protesters as aggravating the economic crisis.
The intention is to induce dissatisfaction with the economic downturn and the decline in stock markets and real estate to Hong Kong, not the Communist Party. I wonder if anyone will fall for this, but it seems to be working just fine for now.
If you look at the Chinese internet and social media, rumors abound that Hong Kong’s speculative forces are ruining the Chinese economy.
As he said, in reality, opposition voices will be high even within the party. But I don’t know what will happen if things change.
“I would like to meet you once more.”
Li Su Wei, Minister of Commerce, waved his hand.
“I would like to meet you.”
Li Su Wei, Minister of Commerce, waved his hand.
“You are busy. It would be better for you to die today.”
It is no exaggeration to say that China’s economy is at a crossroads right now. Anything can turn into bad news.
If rumors spread that I met President Zhang Pinghua for no apparent reason, the Chinese economy could be seen as dangerous. That’s why you’re reacting so sensitively.
“I didn’t come here for no reason.”
“Now is not the time for that.”
“I’m doing this because it’s not the right time for that.”
Seeing my expression, Li Suwei stood up for a moment and came back.
“Can I trust that today’s events won’t go public?”
I nodded.
“of course.”
* * *
I drove into Zhongnanhai in a black car and was ushered into a small room in the Middle Sea.
After waiting there for about an hour, President Zhang Pinghua and Prime Minister Bo Xiaoyu entered together. Zhang Pinghua smiled and took my hand.
“You have worked hard to find a long way.”
“long time no see.”
Prime Minister Bo Xiaoyu said.
“I’m sorry, but I have an appointment after that, so I don’t think it will be difficult to take more than 30 minutes.
“That is enough.”
I said looking at them as they sat down.
“You know that speculative capital is targeting the renminbi.”
China is the most populous country in the world. The Communist Party is moving this huge country into a planned economy.
As the top economists out of a population of 1.5 billion are gathered, you may have already noticed that a certain force is trying to destroy the Chinese economy. It’s just a matter of whether you can succeed or not.
I remembered my conversation with Professor Wei Hewei.
The problems of the Chinese economy were not temporary and accidental, but structural. Corporate debt, real estate bubble, shadow finance.
People called it the gray rhinoceros. If the Black Swan didn’t stop because he didn’t know, the Gray Rhino knew it and didn’t stop it.
We had to solve the problem before a bigger crisis came, but we put it off and let it go, knowing it was a risk.
Meanwhile, the gray rhino has grown so large that it has overthrew China. And now someone is whipping the rhinoceros.
“If the attack begins in earnest, how much longer do you think China can hold out?”(Read more @ wuxiax.com)
He looked at me with indifferent eyes. It was as if they were digging into my inner self.
I looked at each other without averting my gaze.
Money has neither good nor evil, neither friend nor foe. There is only profit and loss. Capital can move anywhere and work with anyone as long as it makes money.
Now, nobody can be trusted. After knowing the facts, there will be no law that tells me not to take the lead in destroying the Chinese economy.
“I think a month will be enough.”
In other words, is it difficult for more than a month?
I did the calculations coolly.
Can you make it on time? The moment I move, the other side also moves. You will only know who will win.
If you succeed, you gain everything, but if you fail, you lose everything. It will be the same over there.
“If there was a way to solve the current crisis, what would it be?”
Everyone in the room was astonished by my words.
Prime Minister Bo Xiaoyu asked with momentum to stand up from his seat.
“Is that really true?”
President Zhang Pinghua also did not make a sound, but his eyes seemed to be surprised.
“Before I tell you how, I want you to make one promise.”
President Zhang Pinghua opened his mouth.
“What?”
“As I just told the former Minister of Commerce, I do not want the People’s Liberation Army to be deployed in Hong Kong. I also wish that Hong Kong’s autonomy and democracy will continue.”
Prime Minister Bo Xiaoyu, who had an expectant expression on his face, raised his voice as if to warn.
“CEO Kang Jin-hoo! You better refrain from saying anything that crosses the line!”
A strong displeasure was evident from the expression on his face.
“I am not saying that I am going against the one China principle. Because Hong Kong is in the same position it is now, which will help China as well. In the past, the Soviet Union had the power to overthrow Finland, but it did not. The harm is far greater than the gain.”
After the Winter War and the Continuation War, Finland maintained trade with the Soviet Union even though it was a free camp, and served as a window for the Soviet Union to connect with the West. Hong Kong today is such an existence for China.
Hong Kong is the financial center of Asia, and out of China’s $2.5 trillion in exports last year, $300 billion came from Hong Kong.
If Hong Kong’s democracy and capitalism collapse in one way or another, capital will leave Hong Kong. If that happens, China will be hit hard as well.
President Zhang Pinghua raised his hand as if not to say anything. Prime Minister Bo Xiaoyu, who was about to refute again, and Li Su Wei, the bewildered Commerce Minister, saw the gesture and bit his mouth.
“Can you tell me how?”
It is important from now on.
Everything that will happen in China and Hong Kong in the future depends on this one person’s mind. If you can’t convince him, nothing happens.
I slowly opened my mouth.
“The way I thought… … .”
